WASHINGTON (Reuters) - The U.S. Federal Communications Commission on
Thursday denied a petition by SBC Communications Inc. that sought to
exempt new Internet-based services from traditional telephone
regulations.

The SBC petition would have shielded the company and its peers' new
Internet networks from rules that are applied to traditional telephone
networks, like providing competitors access to that infrastructure at
wholesale prices.

The FCC voted 4-0 to reject the petition on procedural grounds,
stating SBC asked the agency to withhold imposing regulations that may
or may not apply to the companies or services.

Additionally, the FCC said the company failed to define what services,
locations and companies it wanted the agency to exempt from the
traditional telephone regulations.

Despite the rejection, FCC Chairman Kevin Martin kept the door open
for possible movement down the road.